The military balance in North Africa, and internal security developments in each country, receive less attention than the Arab-Israeli balance and the balance in the Gulf. They are, however, an important part of the security of world energy exports, and the struggle against terrorism and extremism. Moreover, major acquisitions on the part of Algeria and Morocco starting in 2006, and potential major orders by Libya, could mark the beginning of important military modernization efforts in the region. These trends are analyzed in this report.